TransGlobe strikes oil in Egypt

Created: Tuesday, 20 November 2018 06:28

TransGlobe announces test results for the South Ghazalat 6X oil discovery. (Image source: Markus Naujoks/Pixabay)TransGlobe Energy Corporation has drilled the South Ghazalat (SGZ) 6X exploration well to a total depth of 5,195 feet and cased the well as a potential Bahariya light oil discovery, the company announced this in a test results for the oil discovery in Egypt

Subsequently, the company tested three intervals in the Bahariya formation and tested a combined 3,840 barrels per day of light oil from the upper and lower Bahariya.

The lower Bahariya formation flowed naturally at an average rate of 2,437 bpd of light oil, 21 bpd of water and 1.4 mcf of natural gas per day on a 40/64 inch choke from a 42-foot perforated interval. A total of 918 bbo and seven barrels of water were produced during the 10 hour test.

The middle Bahariya produced a small amount of formation water using nitrogen to lift fluid to surface from an eight-foot perforated interval.

The upper Bahariya formation flowed at an average rate of 1,403 bpd of light oil, 210 bpd of water and one mcf of natural gas per day on a 64/64 inch choke from a 23-foot perforated interval. A total of 456 barrels of oil and 65 barrels of water were produced during the eight-hour test.

Based on the positive test rates from SGZ 6X, the Company will begin preparing a development plan for the discovery. In addition, the Company is integrating the SGZ 6X well results into the existing database and mapping to evaluate additional exploration/appraisal drilling in the area and to accelerate potential early development options.

With the completion of SGZ 6X well, the company has met the financial commitments for the current exploration phase of the concession. The South Ghazalat concession was extended to 6 May 2019, with the option to enter into the final 18-month exploration phase. Although encouraging, test rates are not necessarily indicative of long-term performance or ultimate recovery.

Randy Neely, president of TransGlobe, remarked, “Once we have completed our planning we will be able to incorporate the development of this discovery into our 2019 plan, and provide updated capital and production guidance.”